SAN JOSE, Calif. -- Brocade (Nasdaq: BRCD - News), the leader in networked storage solutions that help enterprises connect and manage their information, today announced that it has completed the acquisition of McDATA Corporation (Nasdaq: MCDTA/MCDT). The transaction closed on Monday, January 29, 2007. As a result of the acquisition, shares of McDATA class A and B common stock were converted into the right to receive .75 shares of Brocade common stock and are no longer being traded. Based on Brocade's closing stock price on January 26, 2007, the transaction is valued at approximately $973 million. In conjunction with the closing of the acquisition, Brocade detailed an integrated product line and roadmap, launched a new company branding initiative and announced an additional $200 million stock repurchase authorization.
The combination of Brocade and McDATA creates the world's leading storage networking company with significant benefits for customers, partners, and shareholders. The Company plans to deliver new levels of interoperability and SAN management to protect and extend customers' investments as they evolve and grow their data centers. The acquisition also brings Brocade important new skills and resources that will allow it to further broaden its range of solutions and services to its customers and OEM partners.
"Absolute customer satisfaction is our priority," said Mike Klayko, Brocade's Chief Executive Officer. "After five months of focused integration planning, today we are ready to begin rolling out the advantages of this combined company to the marketplace. We believe that our strengthened ability to rapidly deliver innovative technologies, combined with our industry-leading service and support capabilities, will be crucial to customers as they grow and evolve their data centers. It is an exciting day for Brocade."
"With the completion of the acquisition, customers should now have increased confidence and direction from Brocade for their strategic storage networking investments," said Steve Duplessie, founder of the Enterprise Strategy Group. "Brocade's commitment to protect and extend current customer investments with interoperability and new innovations should bode well for them. In addition, OEM partners will begin to enjoy a more streamlined operational and qualification process from the combined entity."
"I am very pleased with the integration and planning work we have already completed which will allow us to fully integrate the combined companies quickly," said Richard Deranleau, Brocade's Chief Financial Officer. "As a result, I remain very comfortable with the annualized synergies of $100 million by the fourth quarter of combined operations as previously disclosed."